If the Reserve Bank Increases the Quantity of Money, Then

question 6

Multiple Choice

If the Reserve Bank increases the quantity of money, then

• A) the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
• B) the quantity of real GDP demanded increases and there is a movement down along the AD curve.
• C) both the aggregate demand curve and the aggregate supply curve shift leftward.
• D) aggregate demand decreases and the AD curve shifts leftward.
• E) aggregate demand increases and the AD curve shifts rightward.

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Definitions:

Secure Location

A place that has been made safe against unauthorized access, attack, or other threats.

Checking Account

A bank account that allows the depositor to withdraw funds using checks or electronic debit, traditionally used for daily transactions.

Stale Check

A check that has not been cashed or deposited within a specified time, usually six months, making it void or invalid.

Bank

A financial institution that accepts deposits, offers various accounts, provides loans, and offers other financial services to individuals and businesses.